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BlackRock (BLK) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

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BlackRock (BLK - Free Report) reported $4.52 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 4.9%. EPS of $10.91 for the same period compares to $9.55 a year ago.

The reported revenue represents a surprise of -0.71% over the Zacks Consensus Estimate of $4.55 billion. With the consensus EPS estimate being $8.47, the EPS surprise was +28.81%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how BlackRock performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net inflows - Product Type - Cash management: $15.21 billion compared to the $30.98 billion average estimate based on three analysts.
  • Assets under management - Cash Management: $723.68 billion versus $729.24 billion estimated by three analysts on average.
  • Total Assets Under Management: $9,100.83 billion compared to the $9,328.51 billion average estimate based on three analysts.
  • Assets under management - Long-term: $8,377.14 billion versus the two-analyst average estimate of $8,625.4 billion.
  • Revenue- Technology services revenue: $407 million versus the four-analyst average estimate of $368.04 million. The reported number represents a year-over-year change of +20.4%.
  • Revenue- Advisory and other revenue: $43 million versus the four-analyst average estimate of $40.50 million. The reported number represents a year-over-year change of +22.9%.
  • Revenue- Investment advisory performance fees: $70 million versus $120.05 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -14.6% change.
  • Revenue- Distribution fees: $321 million compared to the $328.57 million average estimate based on four analysts. The reported number represents a change of -1.2% year over year.
  • Revenue- Total investment advisory, administration fees and securities lending revenue: $3.68 billion versus the four-analyst average estimate of $3.71 billion. The reported number represents a year-over-year change of +4.3%.
  • Revenue- Investment advisory performance fees- Equity: $17 million compared to the $9.10 million average estimate based on three analysts.
  • Revenue- Investment advisory performance fees- Alternatives subtotal: $47 million versus the three-analyst average estimate of $101.75 million.
  • Revenue- Investment advisory, administration fees and securities lending revenue- Fixed income subtotal: $887 million versus the three-analyst average estimate of $900.12 million.
View all Key Company Metrics for BlackRock here>>>

Shares of BlackRock have returned -10% over the past month versus the Zacks S&P 500 composite's -2.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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